Idox expecting to swing to small profit in 2019 results

Specialist information management provider ldox updated the market on its trading for its financial year ended 31 October on Monday, reporting that it had continued to make “good strategic and commercial progress” across the business, and expected to report results in line with the board's expectations.

The AIM-traded firm said it was anticipating revenues of £66m, down from £67.4m year-on-year, with the board adding that revenue visibility had significantly improved, with an annualised recurring revenue run rate at 31 October up 20% to £38.9m following the adoption of IFRS 15, or up 16% on an organic basis.

It said its contracted software and services order book was ahead 29% to £12.1m, while it was looking at adjusted EBITDA of £14.4m, in line with what it reported in 2018.

Net debt as at 31 October was 17% narrower at £26.4m, compared to £31.8m in the prior year, while the company was looking at statutory profit before tax of £0.3m, swinging from a loss of £27.0m year-on-year, for continuing operations.

Idox said it had made “significant progress” over the last year, following the appointment of a new board, new senior management and finance teams, with improved accounting practises, enhanced employee, customer and shareholder engagement, and full integration of prior period acquisitions.

It said it was continuing to be focussed on its core of public sector software, supported by its content and engineering divisions.

Sustaining and improving levels of recurring revenues remained a priority, the board said, as the group's products transitioned to cloud-based technologies.

The acquisition of Tascomi, completed in August, enhanced its technological capabilities and market-leading positions, the directors claimed, as well as built its recurring software-as-a-service revenue profile.

Tascomi was being integrated into the group, the board said, and was performing to plan.

Further to the update provided in the half-year results, Idox also said it was anticipating announcing its new multi-year committed borrowing facilities prior to its 2019 full-year results announcement.

“Our 2019 financial year has seen extensive and positive changes throughout the business as we have re-established how we organise, measure and run operations across the group,” said chief executive David Meaden.

“We continue to focus on driving full value from the group's assets and working intelligently to drive high margin and cash generation.”

Meaden said he was “excited” by the team the company had assembled, and the opportunities to build value for its employees, customers and stakeholders.

“We remain excited and confident in the ongoing prospects for the group.”

Idox said it expected to issue its 2019 financial year results in early February.

At 0859 GMT, shares in Idox were up 0.57% at 35p.